Mafatlal consolidates its textile business

In a landmark decision, the Arvind Mafatlal Group has embarked on the consolidation of its textile businesses into Mafatlal Industries Limited. Mafatlal Denim Limited and Mishapar Investments Limited have been amalgamated with Mafatlal Industries

Limited to form a large textile conglomerate.

There are several benefits that would accrue through this amalgamation. These include: operational synergies, flexibility in use of manufacturing facilities which would result in quicker ‘speed to market’, opportunity for expanding the denim and textile businesses and, sharing of manufacturing overheads and economies of scale. A larger product mix offering for some of the most demanding customers and brands in India and abroad, a wider combined distribution network in India and globally, potential for branding or retailing and, expansion of MIL’s own or franchisee retail shops pan-India.

In shirtings segment, several high value premium products are being launched this year including linen, cotton-linen shirtings, superfine yarn dyes. MIL recently launched MEZZO – a range of premium suitings across the country, and is currently test marketing Bed & Bath Linen products including towels and bed sheets.

Mafatlal Industries Limited has a large product portfolio which includes specialty and fashion denim fabrics, yarn dyed shirtings, suitings, voiles, prints, linens, bleached white fabric, rubia, school uniforms, corporate/institutional uniforms, bed and bath linen, ready-mades, etc. And as Rajiv Dayal, MD & CEO, Mafatlal Industries says “Mafatlal constantly endeavours to understand consumer preferences and fashion trends and develop suitable products for its Indian and global customers. Our product portfolio caters to the needs of consumers -- value for money, and also specialty and fashion products for mid and upper segment brands. We are also investing in equipment in our Nadiad and Navsari units which produce value added differentiated products.”

Mafatlal Industries has vertically integrated fabric manufacturing composite units located at Nadiad (near Ahmedabad) and Navsari (near Surat) in Gujarat. The total fabric manufacturing capacity (denim and non-denims) is currently 45 MMA (million meters per annum) and this capacity is being expanded to 65 MMA by 2014-15.

MIL has a wide distribution network which comprises 400 dealers and 35,000 points of sale across the country. MIL has nearly 100 Mafatlal Family Shops through which it markets its products and is planning to increase the number to 150 in the next five years. Mafatlal’s products are exported to more than 30 countries across the globe. Also Mafatlal Industries is now amongst the largest suppliers of school uniform. “Our five year plan (2018) is to create a sustainable textile business in India which would continue to increase our product portfolio to cater to all market segments, create a vibrant textile organization for the future and build on brand ‘Mafatlal’ and increase the width of product distribution in India and globally,” Dayal sums up.